Introduction
A racecar driver desperately wants to win this race. He has his foot near, but not yet on, the floor, but his car is only going as fast as his nearest competition. Although his tachometer is right on the redline, the driver thinks that if he pushes the car just a little more, he can pass the competition and win the race. He pushes the gas pedal all the way to the floor, and his car quickly moves ahead of the competition. Since the driver has only half a lap left to go, he thinks that this race is in the bag.
With only a quarter of a lap left to go, a plume of smoke suddenly rises from under the hood of the car, which suddenly grinds to a halt. The frustrated driver sits in his car watching the rest of the field pass him. Instead of taking second place, he will now have to settle for last place.
The structure of the race car system had more influence on the performance of the system than did the element we call the driver.
Faster is Slower
“Faster is slower in systems”
Remember the tortoise and the hare. Systems operate at the pace allowed by their structure. Pushing them too fast will cause delay or breakdown.
In our persistent efforts to create economic growth, we forget that the economy has a natural rate of growth. Rapid rates of business growth, brought on by market intervention, frequently outrun the capability of businesses to generate capital to support that growth. High rates of broader economic growth have the same effect. High rates of consumption eat away at capital growth, which slows future consumption.
Comment
Some of the most successful businessmen have recognized, even if it’s just by intuition, the capabilities of their business systems. They have recognized the capabilities of their manufacturing operation, and more importantly, they understand that customers will not buy more products than they need.
The desire to make more and more money has frequently destroyed formerly viable businesses. If a businessman wants more profit faster, maybe instead of pushing his current business beyond its limits, he should sell that business and buy another one.
Politicians who frequently have no experience running businesses want “the economy” to grow more rapidly. They have this false notion that creating bigger and better numbers will get them reelected. Their intervention usually contributes to the boom-and-bust cycles, which I will discuss in another article.
Conclusion
Always understand the limits of the system in which you are operating. Attempting to complete a job in one day with the system designed to operate at half that speed will frequently lead to equipment damage and a much longer time frame.
Remember, people are also part of the operating system’s structure. An important part of the manager’s job consists of assessing the capabilities of the workforce. Expecting more from workers than what they are capable of can lead to poor performance, frustration, and burnout, on the part of workers.
Could Iran, which had been a problem across the globe for nearly fifty years, have been dealt with more effectively if done slowly and methodically than just bombing them and expecting a positive outcome?